MarketsandMarkets projects the global carbon fiber resin market to grow from USD 292.7 Million in 2016 to USD 532.7 Million by 2021, at a compound annual growth rate (CAGR) of 12.7% during the same period. The global carbon fiber resin market witnessed a strong growth in the past few years considering the high demand for lightweight and superior mechanical properties materials, in the U.S., Germany, and developing countries such as the Middle East, Brazil, and China. The growing aerospace and automotive industries in these countries are driving the carbon fiber resin market.

The major applications of carbon fiber resins are aerospace & defense, wind energy, and automotive among others. Other applications include healthcare & medical and oil & gas. Automotive is estimated to be the fastest-growing application for carbon fiber resin during the forecast period. Carbon fiber resin offers properties such as strength and stiffness, lightweight, corrosion resistance, chemical resistance, high viscosity, and few others resulting in greater demand in automotive and aerospace & defense applications.

The major resins used for the manufacturing of carbon fiber resin materials are thermoplastic resin and thermoset resin. Thermoset and thermoplastic resins are used as matrix to produce these composites. Thermoset resin accounts for a larger market share in comparison to thermoplastic owing to their high strength and resistance to high temperature. Therefore, they have larger application in the automotive and aerospace & defense industries that require more heat and temperature-resistant materials. Thermoset includes epoxy, polyester, and vinyl ester resin. Thermoplastics include resins, such as polyamide and polypropylene.

Currently, North America is the largest consumer of carbon fiber resin. The U.S., Germany, and China are the major markets for carbon fiber resins. The North American region is projected to register the highest CAGR during the forecast period. Brazil is expected to drive the carbon fiber resin market in the RoW region. The growth of aerospace & defense industry focus toward harnessing wind energy, and demand of greener automotive has led to increase in demand for carbon fiber resins.

The manufacturing of composites consists of several steps that result in high end-product price. The machinery and tools required for its production are also capital-intensive, leading to escalated cost. This high cost is a restraint for the OEMs in the supply chain to use composites, limiting the growth of carbon fiber resin. Huntsman Corporation (U.S.) and Alpha Owens-Corning (U.S.) are the few leading players in the carbon fiber resin market. Huntsman provides products and services to various industries to grow its business. It creates and maintains its market value by making new products with unique features that enable market differentiation. The company focuses on its engineering processes for more efficient manufacturing methods and involves in strategic investment to encourage the development of its core strengths in the company. High cost of carbon fiber composite is one of the major restraints for the growth of this market.